“It’s a lot tougher with Mastercard because they only use four main codes. These types of information are very important for. P01 – Unassigned Card Number. EMV has been a mostly global standard since 2004. Visa Chargeback Reason Code 12. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. Capital One's. 1 chargebacks? Merchants can only fight code 12. 1001 - Cardholder does not recognize the transaction. It happens all the time: A customer tries to pay with a credit card, and the card is declined. They can go much higher, though, especially if your business is considered “high risk. Each card company has its own set of codes that indicate the specific reason that a cardholder initiated a dispute. have experienced credit card fraud, and more than a third of all cardholders have been victimized by card fraud more than once. Reason Code 12. ; Help Center Find answers to common questions about Midigator’s technology,. Each chargeback is disputed by a specific reason code. When you look up a chargeback reason code, it should tell you exactly what type of evidence is needed to get the chargeback. According to my company's 2018 State of Chargebacks report, 28% of all merchants identified friendly fraud as their most common source of chargebacks, second only to card-not-present (criminal) fraud. While the risk of chargebacks may elevate your financial exposure, processing credit card payments is. 1001 - Cardholder does not recognize the transaction. This is the name of the business responsible for the charge; often a shortened, yet still recognizable version of the “doing business as” (or “DBA”) name. 113Credit card fraud is rampant, surging after the massive shift to e-commerce that took place during the COVID-19 pandemic. Updated Disputes/Chargeback Policy Coming April 2024You may have processed a debit instead of a credit, processed a credit instead of a reversal, or in some other way submitted a transaction that differed from the obtained authorization. The list of chargeback reason codes in this article is organized by card brand and type of dispute. What causes code 4808 chargebacks? In most cases, code 4808 chargebacks occur when a fraudster with a stolen or counterfeit credit card targets a merchant without EMV-compatible payment terminals or convinces a merchant to swipe or key in the card rather than use the chip. Fill out a chargeback or dispute form. They may sometimes be referred to as Issuer Identification Numbers (IIN). That seems unfair, but it makes sense. Unfortunately, true fraud is not the only cause of. The customer never received the product or service, or the quality wasn’t as expected. 1 Chargebacks A chargeback is a rules-based mechanism, with time-sensitive workflows, that enables the issuer and the acquirer to determine the financial liability of a disputed transaction. Top chargeback reasons, and documentation to submit. Chargeback Reason Code Quick Reference Guide. Unlike Visa and Mastercard, AmEx is the issuing. Whether the CID — the four-digit security code on the front of the Card — matches the issuer’s records. MasterCard Chargeback Reason Codes: Authorization Issues (Codes 3000 - 3011)Definition, How to Dispute. This can also involve tracking and real-time reporting, as well as post-dispute practices like deploying dispute analytics and diagnostics. Discover uses unique codes to explain those reasons to merchants. Be transparent about your products. Reason codes are alphanumeric codes that provide the justification for granting a chargeback. Any action(s) already completed by the acquirer. If the bank does file a chargeback, they’ll transmit the dispute information to the merchant’s bank. Pursuant to the Fair Credit Billing Act of 1974, cardholders have the right to dispute unauthorized or erroneous charges, and issuing banks must reverse a disputed transaction if the cardholder’s claim is valid. 3. In the style of Salvador Dali, Pops of red and teal. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. In some cases it can be upwards of 540 days, though, depending on. Therefore, any transaction with a merchant designated with MCC code 5812, representing restaurants,. We have issued a chargeback for a portion of theunauthorized submitted charge. Chargeback reason codes are alphanumeric strings of digits created by the four card networks – Visa, Mastercard, American Express, and Discover – that help you. The Fair Credit Billing Act, which became federal law in the United States in 1974, was created to address consumer concerns about a new financial product: The credit card. In fact, 91. Discover provides a dashboard called the Discover Network Dispute System. The merchant failed to ship the merchandise to the agreed-upon location. They’ll ask the merchant to run it again, insisting that the magnetic stripe is worn, or that the. The merchant accidentally charged the customer twice. 4 chargebacks? There are two common causes of code 10. 4 - Fraudulent Transaction – Card Absent Environment: The cardholder claims that a fraudulent transaction was made without the physical card involved. Friendly fraud occurs when a customer accidentally or deliberately files a chargeback on a legitimate transaction, instead of trying to first obtain a refund from the merchant. To put it simply, the credit card chargeback is simply the reversal of a transaction previously made by a customer to a vendor. Download our rebuttal letter template and writing checklist today. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. In such. • If the card is present at the time of sale, be sure to compare the credit or debit card account number on an electronically printed draft to the credit or debit card number embossed on the card. 2. 7 trillion in payment transactions in 2022 (that’s more than $475 billion every business day), and credit cards represent 33% of that payment volume, according to Payments Canada. Some credit card companies also include a short phrase describing the code and chargeback. Refund. 8, which indicates a disputed transaction that the cardholder does not believe they should be responsible for receiving. Through it, authorized users can look up transaction and cardholder details, along with other data for each dispute. MasterCard:. . MasterCard: Reason Code 4859 Services not rendered. This code was phased out under the Visa Claims Resolution initiative. A credit card chargeback is when a bank returns money to you because a credit card charge was fraudulent or you bought something online that wasn’t delivered or was. The Discover chargeback reason codes list is just as extensive as the other major US card schemes, despite being the youngest and smallest of the four. 4: Other Fraud–Card-Absent Environment. federal Mail Fraud and Wire Fraud laws, fraudsters face the possibility of time in jail. F22 Expired or Not Yet Valid Card F24* No Card Member Authorisation F29 Card Not Present Chargeback Code Type: Card Member Dispute C02 Credit (or Partial Credit) Not Processed C04. We say the given reason because it may or may not reflect the true. Chargebacks are typically initiated by the original buyer. Check the standard identifi cation and security. Merchants must respond within 30 days of day one for each phase. Next, the issuer passes along all information about the dispute, including the chargeback reason code, to the card network. American Express Credit Card Account . To maintain compliance with NACHA regulations, businesses that process ACH transactions must keep their rates of various return codes under certain thresholds, based on the previous 60 days of activity: Overall returns (all codes): 15%. The chargeback is ordered by the bank that issued the consumer's payment card. It established that consumers are not obligated to pay for billing errors, unauthorized transactions, defective or missing goods, or fraudulent charges. ”. What Are Chargeback Reason Codes? Chargeback reason codes are a set of numbers and letters indicating why a customer is requesting a refund for a purchase. cardholder claims that they do not recognize the transaction and states that they did not authorise the charge to their credit card. Require customers to enter the credit card security code as part of the online transaction process. Retrieval Request/ Copy request Reason Codes. It’s been a problem as long as credit cards themselves have existed. • Chargeback Reason Code – Each chargeback contains a reason code that signifies the reason for the dispute and the rules that must be followed by the issuer and the merchant in order to resolve the dispute. American Express chargeback reason codes, much like Discover, bear one important difference from those under Visa and Mastercard: the issuing bank is also the card network. You literally “re-present” the transaction to the bank and card network, along with evidence to support your claim. have experienced credit card fraud, and more than a third of all cardholders have been victimized by card fraud more than once. 11, 16 NovemberChargeback Reason Codes. 15-Day Waiting Period on Returns. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. Mastercard chargeback reason code 4834 applies for a specific type of customer payment dispute. Chargebacks are also known as "charge disputes" and reversals, and they can be filed for a variety of reasons, including unauthorized use of the credit card. 10. Chargeback is for debit AND credit cards and can be used on any amount – Section 75 only applies to credit cards and for certain amounts. The chargeback reason code provided to you by the card issuer will help you determine both the evidence you’ll need to present and the timeframe you have to submit your response. A credit card dispute, also known as a credit card chargeback, occurs when a customer disputes a transaction with their issuing bank. Visa specifies 46 reason codes under the categories of Fraud, Authorization, Point-of-Interaction. Consumers who use a credit card or debit card to make purchases are protected by both local regulations and Visa and/or Mastercard international dispute resolution guidelines. 2: EMV Liability Shift Non-Counterfeit Fraud: 10. “CVV2” refers to the fact that it is the second-form deployment of CVV (card verification value) technology. For the sake of simplicity and standardization, card networks like Visa have created a breakdown of the acceptable causes for a customer to dispute a credit card transaction by filing a chargeback. ”. So if you've paid for something on your debit card or for something on your credit. Mastercard chargeback reason code 4860: Credit Not Processed covers situations where the cardholder claims they are due a credit, but believes the merchant did not provide it. . Credit card fraud happens when a payment goes through without the card holder’s consent, usually because the card has been stolen. The issuer assigns a reason code to the chargeback. Specifically, the FBCA grants consumers the right to dispute such charges and caps their liability at $50. These codes help businesses understand the cause of chargebacks and how they can prevent them in the future. In broad terms, representment refers to the process of fighting a chargeback. Just like chargeback reason codes, each credit card brand has its own system of AVS codes. They may investigate, reverse the chargebacks,. Reason Code 11. 2. These codes can affect the interchange fees (or tiered fees) you are charged for credit card transactions. 3-D Secure. To encourage merchants to reduce chargeback activity as best they can, the card networks have established remediation programs for merchants with. When a company notifies you of a chargeback, a reason code is attached to the document. Friendly fraud. 9. Disputing a chargeback claim. Card Member received written acknowledgement from the Merchant for a Credit, but the Credit has not been applied to the Card Member’s Account. Most Common Chargeback Reason Codes #1: Fraudulent Transactions or No Cardholder Authorization. The most common reason for chargebacks (30%) is that the purchase was made with a stolen card. Square offers magnetic stripe, chip, and contactless card readers for accepting payments via debit and credit cards, Google Pay, Apple Pay, and QR code payments. 57 - Transaction Not Permitted to Cardholder. Learn More about Discover Chargeback Reason Code NC: Not ClassifiedA chargeback is a safety net designed for cardholder’s security. The only exception is when the 15-days period exceeds the chargeback filing deadline. Credit Card Chargeback Time Constraints. Instead, the issuer withdraws the money from the merchant's. Discover: Reason Code 4755 Non-receipt of goods or services. As confusing as it may be, these two types of chargebacks have nothing to do with one another. Chargeback fraud, also known as friendly fraud or liar-buyer fraud, occurs when a consumer makes an online shopping purchase with their own credit card, and then requests a chargeback from the issuing bank after receiving the purchased goods or services. Read on for the complete guide to dealing with chargebacks. A chargeback is a reversal of funds following a debit or credit card purchase, prompted by the customer filing a dispute over the charge with their bank or credit card provider. If you get a chargeback,. As both a card network and an issuer, Discover specifies 26 reason codes under the categories of. S. To simplify this process, the situations that may qualify for a chargeback are broken down into designated “reason codes. The Disputed Chargeback fee for representation is $20 per chargeback. 9 Essential Merchant Chargeback Rights You Need to Know. Explore different Visa chargeback reason codes and find out how to prevent chargebacks with Visa transactions. Learn which strategies to use as you fight and prevent consumer disputes by reason code. ” Improving the chargeback system will be helpful to acquirers, not just merchants. Pursuant to the Fair Credit Billing Act of 1974 , cardholders have the right to dispute unauthorized or erroneous. Keep in mind that these are calendar days, not business days. Chargeback Reason Codes. Here's a rundown of the most common decline codes: 51 - Insufficient funds: At the time authorization was requested, the customer’s account did not have sufficient funds to cover the transaction. The issuer will also claw back the disputed amount from the acquirer. About 127 million people in the U. In Visa’s case, day one is the day after each phase is initiated. Here’s how they work. Chargeback fraud is more likely to result in a civil case than a criminal one. Post Views: 1,028. Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. Chargeback reason code 10. This primarily depends on the chargeback codes related to the dispute. Amex Processing Errors Chargeback Reason Codes P01 — Unassigned Card Number. Visa Chargeback Code Condition 10. Start your 3-day free trial today! Try Shopify free for 3 days, no credit card required. However, it’s important to have this documentation on hand so you can. This field communicates information about credit card declines post-transaction attempt. How can merchants fight code 13. g. Step #4. Visa - 10. If the numbers don't match, call your Automated Voice Authorization Center and tell the operator that you have a "Code 10" authorization and that. 4853 - Cardholder Dispute; How to Respond. The full unfolding of the chargeback process ends when one of the parties escalates the dispute to arbitration by the credit card network, which has the final word on the chargeback, but not the greater question of the dispute itself. Requirements © When you get one of these response codes, you’re going to have to ask the customer to provide a different payment method: 5 - Do Not Honor. 3 is an updated version of legacy reason code 53, which was phased out under the Visa Claims Resolution initiative. What are reason codes?. The shorthand description is “Declined Authorization. Typically, customers can file a chargeback within 60 to 120 days from the. Chargeback reason code. Capital One launched in 1994 as a corporate spin-off of its parent bank, specializing in a single financial product: credit cards. A merchant category code, or MCC, is a four-digit number that indicates your line of business and the types of goods or services you provide to your customers. 2: EMV Liability Shift Non-Counterfeit Fraud Visa Chargeback Code. MasterCard: Reason Code 4859 Services not rendered. This chargeback occurs when the cardholder does not recognize the transaction on their credit card statement. The charge is reversed and goes back to your credit card. Step 2: Customer initiates the chargeback – After the customer reviews their credit card statement at the end of. 2022 Visa Chargeback. Case number assigned to the chargeback. The issuer assigns a reason code to the chargeback. A business facing chargebacks may see an increase in its chargeback ratio and chargeback penalty fees. Calculating chargeback fees, lost merchandise, and other drains on revenue, the average chargeback will cost merchants $3. There are several different methods for obtaining a credit card payment reversal. . The issuer returns the disputed transaction to the acquirer explaining the reason for the dispute, potentially with supporting documentation. There are several scenarios where a customer may reasonably expect a payment reversal. instead of chargeback reason codes Chapter 3—Dual Message System Chargebacks, Overview, Chargeback Message Reason Codes, First Chargeback: MTI 1442 Removed all references to chargeback message reason code 4802—Requested/Required Information Illegible or Missing as announced in Global Security Bulletin No. Visa Reason Code 10. A chargeback occurs when a customer questions a credit card transaction and asks their bank to reverse it. Canada reached $11. We break it down by card network, reason code, and more. United States; 18167 US Highway 19 N; Clearwater, FL. Each card company has its. Most commonly the payer is a consumer. Let's take a closer look at Capital One chargebacks and how they might differ from those originating from other issuers. The issuing bank received a claim from the cardholder, acknowledging that he or she participated in at least one. Thanks for following the Chargeback Gurus blog. Learn which strategies to use as you fight and prevent consumer disputes by reason code. Investigate suspicious orders. Goods/Services Not Received or Only Partially Received. Step 04 | Chargeback Transmitted to Acquirer. Description. Unchecked fraud can easily put a merchant out of business!A chargeback with reason code 4853 may refer to disputes where the customer claims that a charge on their account is invalid. See moreChargeback Codes by Card Networks Visa chargeback reason codes. This is further complicated because the rights for each incident are based on the reason code. Card Member cancelled, refused or returned goods and/or services A chargeback is a return of money to a payer of a transaction, especially a credit card transaction. Please deal directly with the cardholder for reimbursement. 2 Other Fraud – Card Present Environment 81(1) 10. Learn more about Mastercard chargeback reason codes. Mastercard and Visa print a three-digit card code. 461 trillion in purchase volume in 2021. Fraud. There are many reasons a consumer may file a return item chargeback. Each card scheme has its own regulations. These numeric codes vary via card brands, yet all hypothetically fill the same need: to provide explanation behind the chargeback dispute. The time limits for responding to a chargeback also vary based on the card scheme and the chargeback reason code. The most relevant Mastercard chargeback codes for the majority of merchants can be broken down into four main categories—authorization, cardholder dispute, fraud, and. Customer Service Department PO Box 981532. 10. While the risk of chargebacks may elevate your financial exposure, processing credit card payments is more critical than ever. Credit Card Chargebacks: Some Common Causes. [noun]/* rə • trē • vəl • rə • kwest/. Chargeback reason codes identify the reason the cardholder filed a chargeback, which can include friendly fraud, merchant error, or credit card fraud. By entering your email, you agree to receive marketing emails from Shopify. American Express Credit Card Account . It was originally just one facet of legacy reason code 81. Category. eCommerce grew too fast for the payments industry to respond. Here's what you need to know about the chargeback process. Visa’s process introduces four dispute categories and associated numerical labels (Fraud – 10, Authorization – 11, Processing Errors – 12, Consumer Disputes – 13) under which the renamed reason codes will be placed. Therefore, you should understand credit card chargeback merchant rights to ensure you protect your business from chargeback frauds whenever possible. 1? Chargeback reason code 11. FR2 Fraud Full Recourse Program. The acquirer or merchant has 30 days to respond to a chargeback filed under reason code 13. Chargeback reason code 4853 can be used to indicate disputes where the cardholder simply claims that the merchant never delivered on what was promised. This is not always as straightforward a process as it might seem. Unfortunately, true fraud is not the only cause of chargebacks. Chargeback fraud costs sellers over $20 billion in 2021. 54 - Expired Card. 2. From a merchant’s perspective, the greatest asset offered by 3DS is protection against liability in the event of fraud. ’ Well, what is it exactly? With Visa CE 3. Per your agreement with American Express, when you give a refund for a purchase made with the card, you must credit that card account. Chargeback. Buyers and sellers trust Paypal because of its reputation for security and its. This 15-day window offers merchants more time to file a refund and avoid the chargeback issue. Once a chargeback is filed, a merchant has: 5 days to accept or challenge the chargeback. Retrieval Request/ Copy request Reason Codes. The issuing bank will evaluate the evidence provided and, if they find it compelling, reverse the chargeback. Even if a merchant disputes a chargeback and wins, it still counts against their ratio. Every credit card company has its own unique set of reason codes, which can get confusing for merchants. Canceled Recurring Billing. 10. ”Updated August 23, 2023. 7 Chargeback Reason Code List - U. The sales receipt and/or date and amount of the authorization if other than the transaction date. It also you to upload evidence to fight a Discover chargeback. The following are reason codes for the same scenario: Visa: Reason Code 30 Services not provided or merchandise not received. When a chargeback happens, the bank withholds or withdraws funds from. According to Discover, cardholders officially have 120 days from the date of the transaction to initiate. For a Mastercard late presentment chargeback to be valid, all the following conditions must apply: The cardholder’s account must be permanently closed. If you choose to have Amazon Pay handle the dispute on your behalf, they will build, present, and maintain your case with the credit card company or bank. 11/03/15 Updated these MasterCard Chargeback Codes: 08, 12, 31, 34, 42, 53, 55, 59, 60, 70, 71. Chargeback reason code 4837: No Cardholder Authorization applies in situations where customers claim a card transaction was unauthorized, but do not feel the issue can be resolved through the merchant. • Section 4: Chargeback Reason Codes—Contains detailed information on the reason codes for the most common types of chargebacks that merchants receive. 2. Reason Code 02: Common Point of Purchase: Account data is stolen from the card-present merchant and used with other merchants: Reason Code 03: Laundering: The merchant processed transactions that did not involve a bona fide cardholder: Reason Code 04: Excessive Chargebacks: The merchant breached predetermined chargeback. If you’ve received a credit card chargeback, Wave will contact you by email to notify you and provide details of your case, including the reason for the chargeback. When the cardholder’s card is swiped or their chip is inserted into your EMV. Chargebacks were introduced as a form of consumer protection against fraud. 1 chargeback: The merchant failed to ship the merchandise or provide the service as agreed. For example, authorization code 10 indicates. 1003 - Transaction Supporting Document (TSD) needed. Get $20 when you sign up for a free KOHO account with code HARDBACON and enjoy 3 months of KOHO Extra to unlock up to 4. Chargebacks differ from standard return requests in several ways. Deadline for submitting representment documents. So the company has more incentive to side with customer during cardholder. Chargeback. If a transaction has been declined, the authorization code will provide further details. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. US federal law stipulates that credit card issuers provide at least 60 days for customers to file chargeback requests, and you may get up to 120 days, depending on the reason for the chargeback. It may also result when a sales transaction violates the rules established by the Payment Brands. Transaction amount and the chargeback amount. A chargeback is an action taken by a bank to reverse a payment and trigger a dispute resolution process. C01:. AT Authorization Noncompliance. 8 chargebacks? If the Original Credit Transaction was reversed and should not have. The merchant ends up losing merchandise, shipping costs, processing fees and eats a $35 chargeback fee. Chargeback penalty fees can. A credit card dispute, also known as a credit card chargeback, occurs when a customer disputes a transaction with their issuing bank. 10. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. A retrieval request—sometimes called a “soft chargeback”—is a method of obtaining a copy of the paperwork to validate a transaction. You can request a chargeback from the bank that issued the card If: The transaction was unauthorized. A refund comes directly from a merchant, while a chargeback comes from your card issuer. Goods/Services Not Received or Only Partially Received. For each reason code, a definition is The Mastercard chargeback reason codes were condensed down in 2016, like the process that Visa just underwent with Visa Claims Resolution. Blog Read helpful tips, industry insights, and articles to create the most effective chargeback management strategy. This list was generated 5/4/2022. Code. 57 - Transaction Not Permitted to Cardholder. Fines exceeding $10,000 can also be levied against businesses where monthly chargeback rates go over a certain number. Chargebacks are not a legal right, but if you have paid on a Visa debit or credit card, you. Each of these situations was given an alphanumeric identification code called a chargeback reason. A disputed charge, or chargeback, describes the process that occurs once a cardholder refuses to accept responsibility for a charge on their credit or debit card. In fact, there are literally thousands of pages of chargeback regulations published by the card networks. The codes also appear on financial reporting associated with disputes. C28. However, you have to remember that any merchant accepting credit cards also runs the risk of Shopify chargebacks. If the dispute is successful, funds are taken from your merchant account and a strike is made against your business. The claim the cardholder is making here is that they did not authorize the transaction and are alleging their card was used fraudulently or that the merchant pushed a transaction through without. This category of fraudulent chargeback claims is represented with the following reason codes: AMEX - F29 Card Not Present. Mastercard chargeback reason code 4808 – Required Authorization not Obtained is one of the numeric labels assigned by banks to each customer dispute, indicating the given reason for the claim. A Visa chargeback is a process by which a Visa cardholder disputes a transaction and requests a refund from the merchant through their issuing bank. Added these Discover. 4 chargebacks? Merchants can fight code 13. 5 Visa Fraud Monitoring Program Authorization Reason CodesThe issuing bank assigns each case a code according to the consumer’s claim, and the merchant must adhere to the time limits for that specific code. The credit card issuer—which could be their bank, Visa, Discover, Mastercard, or American Express—will then assign a reason code to the chargeback. The interviewer may ask this question to assess your knowledge of chargeback reasons. 50 Insider Tips for Preventing. Chargeback Fraud Is on the Rise. Credit Card Chargeback Time Constraints. That said, fees normally range between $20 and $100 per claim. For example, here are reason codes from each major credit card company: Visa: Reason Code 30 Services not provided or merchandise not received. Visa chargeback codes explained. a) Code 75 (Cardholder Does Not. The only resource you need to become an expert on chargebacks, customer disputes, and friendly fraud. Discover uses the same four main categories as Visa to organize its reason codes: Authorization, Card Member Disputes (which Visa refers to as Consumer Disputes), Fraud, and Processing Errors. Here’s a comprehensive list of Mastercard chargeback reason codes that you might see on your screen: 4807: Warning Bulletin File. Now, 10. If the CID doesn’t match, merchants generally prompt the Card Member to re-enter it. 3 applies when a cardholder claims a charge—made in a card-present environment—was. In these cases, a credit card chargeback is fairly straightforward. ) has its own reason code system, so sellers should carefully check the card used for the. In short: yes. If you don’t send in the necessary information within the timelines allowed, you may be subject to a Chargeback with no further recourse. compliance process depending on whether a chargeback right exists. . Too many fines and the retailer may be labeled as “high risk” by credit card companies and even lose credit card processing privileges or be hit with higher chargeback fees and penalties. With a chargeback, funds are held from businesses until payment card issuers decide what to do. Offer shipment and delivery tracking. Refunds should be utilized when the original transaction has already settled and the funds are in the merchant account. Top chargeback fraud statistics. When the cardholder’s card is swiped or their chip is inserted into your EMV reader.